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Allied Waste to bring $300 million 10-year notes in refinancing deal
By Paul A. Harris
St. Louis, March 27 - Allied Waste Industries announced in a late Thursday press release that it will bring $300 million of senior notes due 2013 as part of "a multifaceted financing and divestiture plan to replace its bank credit facility, significantly extend maturities, substantially enhance liquidity and improve its capital structure while accelerating deleveraging."
The Scottsdale, Ariz. waste services company will also take out a $3 billion credit facility led by JP Morgan, Salomon Smith Barney, Credit Suisse First Boston, Deutsche Bank Securities and UBS Warburg.
"We are pleased to announce these exciting plans to improve the capital structure of our company," said Tom Ryan, executive vice president and CFO of Allied Waste, in the Thursday release. "We believe investors will benefit from the multiple steps taken to significantly extend maturities, increase covenant flexibility and enhance liquidity. Cash generated from the financing and divestiture activities combined with the 2003 free cash flow should enable us to retire $1 billion of debt this year, bringing our year end debt balance below $7.9 billion."
The plan also includes the issuance of approximately $100 million of common stock, and approximately $300 million of three-year mandatory convertible preferred stock, in addition to a $150 million on-balance sheet accounts receivable securitization. The plan also calls for divestitures generating approximately $300 million of after-tax proceeds during 2003.
Timing and syndicate names on the junk bonds were not available as Prospect News went to press Thursday night.
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